FCC Vote Opens Door to Wider Broadcast TV Consolidation 

By The Media Line Staff 

The Federal Communications Commission voted 2-1 Thursday to eliminate the rule preventing one company’s television stations from reaching more than 39% of US households, replacing the nationwide ceiling with individual reviews intended to help traditional broadcasters compete with streaming services and technology companies. 

Republican FCC Chair Brendan Carr and Commissioner Olivia Trusty supported the repeal, while Democratic Commissioner Anna Gomez dissented. Under the new system, the FCC will decide whether acquisitions exceeding the former limit serve the public interest. The commission said the change could improve broadcasters’ access to investment and revenue. 

Carr argued that television station groups face constraints not imposed on digital competitors. “We should stop hamstringing this one segment of the broader market with outdated restrictions,” he said. He warned that local television could follow newspapers into decline without greater scale and investment. 

The decision is expected to trigger litigation over whether the FCC can alter a limit Congress addressed in the Consolidated Appropriations Act of 2004. Opponents contend that lawmakers fixed the cap at 39%, while the commission maintains that Congress directed it to revise an agency rule rather than establishing an unchangeable statutory limit. 

Gomez called the repeal “unlawful on its face” and warned that it could place greater control of public airwaves in the hands of companies favored by the administration. 

Criticism crossed ideological lines. Free Press Vice President Matt Wood said, “Brendan Carr cannot undo the limit that Congress set just because he feels like it.” Free Press is a progressive media advocacy organization. 

From the right, Newsmax CEO Chris Ruddy rejected the FCC’s claim that consolidation would increase competition. “Anyone with a brain understands it does the opposite,” Ruddy said, warning that larger station groups could demand higher carriage fees from cable and satellite providers. 

Broadcasters say consolidation would strengthen local news operations and help them compete with Google, Meta, and streaming platforms. Critics fear fewer independent owners, reduced viewpoint diversity, newsroom cuts, and higher consumer bills. 

The ruling could aid future acquisitions and bolster Nexstar’s purchase of Tegna, which would extend Nexstar’s reach to about 80% of US television households. That transaction already faces court challenges alleging damage to competition and consumers. The FCC vote ensures that the larger fight will now move from the commission room to federal court.